"The marginal rate of substitution of the good measured along the x-axis increases as a consumer moves downward along an indifference curve." Is the previous statement correct or not?
What will be an ideal response?
The statement is incorrect because the marginal rate of substitution decreases as a consumer moves downward along an indifference curve.
Economics
You might also like to view...
A change in the price of important inputs will change the quantity supplied but will not shift the supply curve
a. True b. False Indicate whether the statement is true or false
Economics
The "paired observation" of (12, 6 ) means
A) x = 12, y = 6. B) x = 6, y = 12. C) x = any multiple of 12, y = any multiple of 6. D) the origin is at 12 and 6.
Economics